The accounting records of NuTronics, Inc., include the following information for the year ended December 31. Dec. 31 Jan. 1 Inventory of materials ... $24,000 $20,000 Inventory of work in process ... 8,000 12,000 Inventory of finished goods ... 90,000 80,000 Direct materials used ... 210,000 Direct labor ... 120,000 Selling expenses ... 170,000 General and administrative expenses ... 140,000 Overhead assigned to production was $192,000. a. Prepare a schedule of the cost of finished goods manufactured. (Not all of the data given are used in this schedule.) b. Assume that the company manufactures a single product and that 20,000 units were completed during the year. What is the average per-unit cost of manufacturing this product?

Question

Business

Marlene Ray

16 May, 13:29

The accounting records of NuTronics, Inc., include the following information for the year ended December 31. Dec. 31 Jan. 1 Inventory of materials ... $24,000 $20,000 Inventory of work in process ... 8,000 12,000 Inventory of finished goods ... 90,000 80,000 Direct materials used ... 210,000 Direct labor ... 120,000 Selling expenses ... 170,000 General and administrative expenses ... 140,000 Overhead assigned to production was $192,000. a. Prepare a schedule of the cost of finished goods manufactured. (Not all of the data given are used in this schedule.) b. Assume that the company manufactures a single product and that 20,000 units were completed during the year. What is the average per-unit cost of manufacturing this product?

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Answers (1)

Know the Answer?

Jovan Barron · Answer 1

Cost of finished goods manufactured = $526,000

Average cost = 26.30 per unit

Explanation:

The computation of given question is shown below:-

A. Cost of finished goods manufactured

Work in progress $12,000

Manufacturing costs assigned to production:

Direct materials used $210,000

Direct labor $120,000

Manufacturing overhead $192,000

Total manufacturing costs $522,000

Total cost of all goods $534,000

Less: Work in process inventory 31 December $8,000

Cost of finished goods manufactured $526,000

B. Average cost = Cost of finished goods manufactured : Manufactured unit

= $526,000 : $20,000

= 26.30 per unit